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					                                                      What’s Up

      What’s Up
                                                                                     Tom Borkowski (BOS)
                                                                                       US AIRWAVES Staff

FAA        In an effort to limit runway incursions, the FAA will implement ten measures chosen by a joint
           government/industry safety implementation team (JSIT). John Mayrhofer, Runway Safety Program
           Director, said that the team selected ten steps that have the “highest near-term potential to reduce
           runway incursions and accidents.” Six of the solutions promote the development of specialized
           training for pilots, air traffic controllers, and airport vehicle operators, and would include an
           awareness campaign for foreign airline pilots.
                                                                                      (Aviation Daily, Aug. 1)

           The ALPA Master Executive Council at United has entered into an agreement with the airline and
           the FAA that will lead to the implementation of a Flight Safety Awareness Program this fall.
           According to Rick Dubinsky, chairman of the United MEC, the program will facilitate the
           collection of safety information that would otherwise be unavailable, and will allow the participants
           to address the issues in a remedial, rather than punitive, manner.
                                                                                     (Aviation Daily, Aug. 1)

Industry   A new carrier, Air Caraibes, was created when Air Martinique, Air Guadeloupe, Air St. Martin, and
           Air Caraibes merged. The airlines, which operated from the Caribbean islands whose names they
           bore, took the name of the majority stockholder of the merged company. Strongly backed by island
           governments highly dependent on income from tourism, the merger is expected to increase both
           regional traffic and international arrivals from Europe and North America.
                                                                                   (Aviation Daily, Aug. 1)

           After BAE received the second commitment for its new RJX-100 regional jet, Nick Godwin, BAE
           Systems VP of marketing, said that he sees strong interest for the four-engine plane in the European
           market, but not in the U.S. “It’s really quite ridiculous,” Godwin told Show News. “The world’s
           largest free market is controlled by pilots, producing a black hole between 50 and 100 seats.” The
           Avro RJX is anticipated to enter service in September of next year.
                                                                                     (Aviation Daily, July 31)

           Ken Quinn, former FAA counsel who represented SabreTech in the case concerning the ValuJet
           crash, said at a House Transportation aviation subcommittee hearing that the current trend toward
           prosecution is “chilling,” and it is “borderline malpractice” for attorneys not to advise their clients
           to consider taking the Fifth Amendment to avoid incrimination. Panelists differed on the worth of
           criminal prosecution when weighed against the loss of valuable information from those connected
           to accidents. ALPA Executive Air Safety Chairman Paul McCarthy said, “Without full disclosure,
           you never find out what happened.” Ranking Minority Member William Lipinski (D-Ill.) stated the
           difficulty in finding a “delicate balance” that would not compromise safety. “Criminal investiga-
           tions do not foster a cooperative environment.”
                                                                                      (Aviation Daily, July 28)

32                                                                                  US AIRWAVES – August 2000
                                          What’s Up

                       Leading members of the Senate Commerce Committee and its aviation subcommittee voiced
                       concern over a bill that would increase the retirement age for commercial pilots in good health to
                       age 65. Panel Chairman Slade Gorton (R-Wash.) said that “changing the age 60 rule would
                       undoubtedly expand the pool of potential pilots, but we must be careful not to do so if it increases
                       the risk of flying for the public.” In a statement Commerce Committee Chairman John McCain (R-
                       Ariz.) noted that the FAA’s choice of age 60 “is an appropriate standard.” He added that Congress
                       “must be cautious before taking any action that would substitute its views for those of the agency
                       responsible for aviation safety. I am aware that there are legitimate views on both sides of this
                       issue, but it is one that tends to fall within the authority of the FAA.”
                                                                                                 (Aviation Daily, July 27)

                       According to Atlanta-based AIR, Inc., pilot hirings continue to outpace the record growth of last
                       year. This year’s rate should lead to the employment of about 19,264 pilots, more than 4,000 above
                       the total in 1999.
                                                                                                (Aviation Daily, July 17)

Air Wisconsin          The United Express carrier will begin flying three daily trips between Little Rock, Arkansas, and
                       Chicago O’Hare on October 1.
                                                                                               (Aviation Daily, July 20)

AirTran                The low-fare carrier will make Toledo, Ohio, the thirty-second city it serves on October 3. On that
                       date the airline will begin operating three daily nonstop flights between Toledo Express Airport and
                                                                                                   (Business Wire, Aug. 2)

                       AirTran plans to increase operations at its Atlanta hub gradually over the next year and to add service
                       to two new markets. Chief Financial Officer Robert Fornaro stated, “There are a number of
                       opportunities to fill out our schedule.” The airline plans to announce a new city this fall and another
                       one early next year.
                                                                                                   (Aviation Daily, July 27)

America West           America West has expanded its service at the Hartford/Springfield airport. It now offers three daily
                       roundtrips to Columbus and one to Las Vegas, all in Airbus A319s.
                                                                                              (Aviation Daily, June 22)

                       The carrier plans to enhance its international operations with new flights to Guadalajara, Mexico
                       and Toronto and additional service to the Mexican destinations of Los Cabos and Puerto Vallarta.
                       On September 13, the airline will launch the first daily nonstop from Phoenix to Guadalajara, which
                       will be operated by Mesa Airlines in one of its 50-seat Canadair RJs. America West will begin
                       flying a daily roundtrip between Phoenix and Toronto with Airbus A320s on October 30. On New
                       Year’s Day, the airline will add a third daily nonstop between Phoenix and Los Cabos and a second
                       daily flight from Puerto Vallarta to Phoenix.
                                                                                                (Aviation Daily, June 20)

August 2000 – US AIRWAVES                                                                                                  33
                                                        What’s Up

               In an attempt to improve operations, the carrier will immediately reduce scheduled flying. The drop
               in daily flights to 863 from 880 will free up four aircraft to provide spares to substitute for planes
               that may be under maintenance or unavailable because of weather or air traffic control, and to
               increase access to aircraft for reliability-related maintenance. Other moves will include the
               restructuring of line maintenance operations and increasing the number of ramp personnel in
               Phoenix and Las Vegas.
                                                                                          (Aviation Daily, July 28)

               America West will increase the size of its Airbus fleet with a firm order for four A319s to be
               delivered next year. The new aircraft will bring to 14 the number of new Airbus Industrie airplanes
               to be delivered to the carrier in 2001.
                                                                                         (PRNewswire, July 26)

America West   The regional airline, operated by Mesa Airlines, will begin flying to Stockton, Calif., from Phoenix
Express        next February. The three daily nonstop roundtrips will be flown with 50-seat Canadair Regional
                                                                                         (Aviation Daily, July 26)

American       On August 31, the carrier will inaugurate service between Dallas Love Field and New York
               LaGuardia. To handle the new flights, American will temporarily reduce from five to four the
               number of roundtrips from Love to Chicago O’Hare, and will reconfigure a sixth Fokker 100 to the
               56 first-class seats it offers from Love. The additional plane will allow American to bring back the
               fifth Chicago flight this fall, along with a fourth daily roundtrip to LaGuardia.
                                                                                         (Aviation Daily, June 23)

               Beginning next January, American will spend an additional $11 million in more frequent pilot
               recurrent training. The new endeavor, which will bring in all line pilots every nine months instead
               of once a year, was prompted by suggestions from the company’s pilots, according to Bob Kudwa,
               VP-flight and chief pilot. “Pilots will spend more time in the simulator, and ground school will
               include expanded courses on critical flight elements like radar, weather, and aerodynamics.”
                                                                                         (Aviation Daily, June 20)

               The carrier intends to terminate its four weekly nonstop flights to Sao Paulo, Brazil, from
               Orlando on September 6. Peter Dolara, senior VP for Latin America, said the airline had “no
               alternative” due to “disappointing” load factors on the Orlando-Sao Paulo route. Despite the
               lackluster performance of that route, Dolara said American’s other Orlando flights are doing
                                                                                        (Aviation Daily, Aug. 2)

               American confirmed orders for new aircraft to be used for some planned expansion and fleet
               replacement. The six B-777-200IGWs and three B-737-800s will be delivered late next year
               and the first half of 2002.
                                                                                      (PRNewswire, Aug. 1)

               The airline will discontinue twice-daily nonstops between Long Beach and Chicago O’Hare on
               September 6. Tom Del Valle, VP-customer service, said, “Disappointing passenger loads on the
               route leave of us with no alternative.”
                                                                                    (Aviation Daily, July 20)

34                                                                                      US AIRWAVES – August 2000
                                           What’s Up

American Eagle         The airline has exercised options for six more Embraer regional jets, but will await the outcome
                       of talks between American and its pilots union to determine the model. American Eagle would
                       prefer to order 50-seat ERJ-145s, and will be able to if American pilots ratify a tentative agreement
                       that expands the number of 50-seat regional jets that the regional carrier is allowed to operate.
                                                                                                  (Aviation Daily, Aug. 2)

                       American Eagle pilots say that American is trading their right to fly 70-seat regional jets to repair
                       fractious relations with the Allied Pilots Association. The regional pilots want American to bring
                       them under one union, and say that they had sacrificed the right to set their future pay rates and the
                       right to strike under an unprecedented 16-year contract in order to fly the larger RJs. Eagle ALPA
                       MEC chairman Cevin Kehm said, “These sacrifices were made only because management said it was
                       necessary if the four [AMR regional] carriers were to be combined and share equally in the ability
                       to fly—and more importantly to earn the incomes provided by the 50- and 70-seat jets.”
                                                                                                 (Aviation Daily, July 28)

                       The regional affiliate for American will start new nonstop service between Dallas/Fort Worth and
                       Madison, Wisc. on September 6. The two daily roundtrips will be offered on the 50-seat ERJ-145
                       regional jets.
                                                                                                 (PRNewswire, July 24)

Atlantic Coast         The Washington-Dulles based United Express carrier announced that it will add new regional jet
Airlines               service from the Greenville/Spartanburg International Airport to Chicago O’Hare on September 6.
                       The three new daily flights, to be serviced by 50-passenger Canadair Regional Jets, will comple-
                       ment Atlantic Coast’s four daily flights from Greenville/Spartanburg to Dulles.
                                                                                                (PRNewswire, June 22)

                       The carrier will upgrade service on its four daily roundtrips between Providence, R.I., and
                       Washington Dulles. Beginning September 6, service will be aboard the 50-passenger Canadair
                       Regional Jet.
                                                                                           (Aviation Daily, Aug. 2)

Atlantic Coast         The Delta Connection carrier will inaugurate service between New York LaGuardia and three
Jet                    destinations on August 21 with the 32-passenger Fairchild 328JET. There will be five daily nonstop
                       roundtrips to Providence, R.I., four to Portland, Maine, and three to Greenville/Spartanburg, S.C.
                                                                                                 (PRNewswire, July 27)

Atlantic South-        The Delta Connection will expand its Texas service on July 1, when Atlantic Southeast Airlines will
east Airlines          offer six daily flights from Dallas Love Field to Atlanta. The carrier will also add six daily flight
                       from Dallas/Fort Worth, three to Amarillo, Texas and three to Savannah, Ga.
                                                                                                   (PRNewswire, June 29)

Continental            On August 1, the carrier launched service between Oakland, Calif., and Newark. The twice-daily
                       nonstops will be flown in B-737-700 aircraft, configured to 12 seats in First Class and 112 in
                       Economy Class.
                                                                                               (Business Wire, Aug. 1)

August 2000 – US AIRWAVES                                                                                                 35
                                                       What’s Up

              Continental has suspended flights from Houston and Newark to Santiago, Chile and Santa Cruz,
              Bolivia, because Peruvian civil aviation authorities have refused to grant it fifth-freedom rights
              from Lima to both destinations. The situation has severely curtailed traffic, and since starting the
              flights on June 21, Continental has lost $100,000 a day on the services.
                                                                                        (Aviation Daily, Aug. 1)

Continental   The regional subsidiary of Continental announced orders for Embraer’s new 50-passenger ERJ-
Express       145XR, the extended-range version of the ERJ-145 regional jet. This brings the airline’s order to
              275 firm aircraft (150 ERJ-145s, 75 ERJ-145XRs, and 50 ERJ-135s), and options for an
              additional 100 planes exercisable over the next six years.
                                                                                      (PRNewswire, July 25)

Delta         The airline voiced disappointment with a decision by the National Mediation Board to rerun an
              election to determine whether the Transport Workers Union would represent Delta’s cargo and
              ramp employees. “While Delta feels it is inappropriate to comment on the procedural irregulari-
              ties caused by the NMB itself, the company strongly believes our people acted properly in
              communicating the company’s views regarding the TWU election,” the company said. In the first
              election more than 83 percent of eligible voters rejected representation by TWU.
                                                                                      (Aviation Daily, Aug. 2)

Express I     The regional carrier, operating as Northwest Airlink, will convert all of its current Memphis-Tulsa
              flights to regional jets, effective August 28. Currently flying 33-seat Saab 340 turboprops on the
              four daily nonstops, Express I will change its service to the 50-seat Canadair Regional Jets.
                                                                                        (Aviation Daily, June 16)

Frontier      The airline will move forward to May, 2001 from September, 2002, the delivery date of its first
              owned Airbus A319. Frontier had planned to take delivery of its first A319, a leased aircraft, next
              June. Sean Menke, VP-market planning, said taking the early delivery “enables us to enter next
              summer’s heavy travel period with two growth Airbus aircraft in our fleet.”
                                                                                     (Aviation Daily, July 25)

JetBlue       The carrier announced plans to add service from New York JFK to the Florida destinations of Fort
              Myers and West Palm Beach. October 18 will mark the start of the first flight to West Palm Beach,
              and November 18 will see a second flight there along with the start of daily service to Fort Myers.
              “New Yorkers have a love affair with Florida,” said David Neeleman, CEO of JetBlue Airways. “And
              West Palm Beach and Fort Myers are a perfect complement to JetBlue’s other Sunshine State
              destinations—Fort Lauderdale, Tampa, and Orlando.”
                                                                                        (Business Wire, Aug. 2)

              JetBlue will begin service to Burlington, Vt., on September 7. The twice-daily flights from New
              York JFK will be aboard Airbus A320 aircraft.
                                                                                    (Aviation Daily, July 18)

36                                                                                   US AIRWAVES – August 2000
                                          What’s Up

LASV                   The corporation, organized in 1991 and currently traded on the Nasdaq Exchange, revealed plans
Enterprises            to buy a 75.1 percent majority interest in a U.S.-based airline, believed to be North American
                       Airlines. The airline that LASV intends to purchase has been profitable for a decade, operates a
                       fleet of B-757-200s and B-737-800s, has dedicated airport facilities, a 501 DOT authority, and a
                       FAR Part 121 authorization to operate worldwide as a U.S. scheduled flag airline and charter
                       carrier. LASV is also applying to change its name to Premier Travel and Entertainment Corp. in
                       order to “. . . to better reflect the future focus, direction, and business strategy.”
                                                                                                  (Aviation Daily, June 27)

Legacy Airlines        The startup airline has changed its name from Oneida Airlines. According to its website,
             , the carrier expects to continue “the proud traditions of Mohawk Airlines and
                       Empire Airlines.” Legacy is still negotiating with investors and will file financing information
                       requested by the DOT by July 20.
                                                                                              (Aviation Daily, July 17)

Mesa                   Mesa Air Group is considering an offer from Raytheon to immediately return up to 20 surplus
                       1900D aircraft, used primarily to serve rural communities. Such a move could save the company
                       millions of dollars per year. Mesa has been looking to dispose of its excess 19-seat aircraft, and
                       has already reduced its fleet to 77 from 118. President and Chief Operating Officer Mike Lotz said
                       Mesa regrets the impact eliminating the aircraft from the fleet will have on the rural communities
                       it serves.
                                                                                                 (Aviation Daily, Aug. 2)

Midway                 The carrier said that it will begin one daily jet flight from Norfolk, Va., to its hub at the Raleigh/
                       Durham International Airport on August 8. The flight, to be operated with one of Midway’s Canadair
                       Regional Jets, will complement four other daily flights between the two airports offered by
                       Midway’s commuter partner, Corporate Airlines, utilizing the 19-seat British Aerospace Jetstream
                                                                                                    (PRNewswire, June 29)

National Airlines      The Las Vegas-based carrier has reached agreements to acquire as many as eight new B-757-200s
                       with options for 12 more. National will take four of the aircraft next year, all from GE Capital
                       Aviation Services. The other four are slated for delivery in 2002.
                                                                                             (Aviation Daily, June 27)

Northwest              The airline and its Airlink partner announced new regional jet service between Pensacola, Fl., and
                       Memphis. Effective October 1, two of the four daily flights will utilize the regional carrier’s new
                       50-passenger Canadian Regional Jet.
                                                                                                  (PRNewswire, July 31)

                       Northwest stated that it will suspend daily service from Detroit to Milan on October 28. The airline
                       will continue its daily nonstop Detroit-Rome service, and will re-deploy the DC-10 aircraft used
                       for the Milan trip to expand service in the fast-growing North America-India market.
                                                                                                   (PRNewswire, July 28)

August 2000 – US AIRWAVES                                                                                                 37
                                                           What’s Up

                  The carrier will accelerate the deliveries of ten aircraft after reaching agreements with Boeing and
                  Airbus Industrie. Five B-757-200s, set for delivery in 2004, will now be delivered in 2001 and five
                  Airbus A320/A319 family aircraft will also be delivered next year. Richard Anderson, Northwest
                  Airlines executive vice president and chief operating officer, said, “The acceleration of these
                  deliveries facilitates our fleet simplification strategy. We’ll be able to start retiring our B-727-
                  200 fleet by mid-2001, a full year earlier than we had originally planned, giving us significant
                  operating cost savings and enabling us to operate and maintain just one fleet type in the 150 seat
                                                                                                (PRNewswire, July 24)

Southwest         The airline signed the largest order in its history on June 29, when it inked an agreement for as many
                  as 290 B-737-700s, which included 94 firm orders. According to CEO Herb Kelleher, roughly a
                  quarter of the new deliveries will be used to start routes to new markets, while the remaining planes
                  will be used to increase service to existing cities. He also added that the carrier plans to expand
                  capacity about eight percent annually through 2008, but has the flexibility with the new order to
                  boost that to as much as 12 percent in any year. Kelleher said that during the next few years there
                  will be a “significant focus” on boosting East Coast service “from Maine to Florida.”
                                                                                              (Aviation Daily, June 30)

                  Southwest will inaugurate service from Buffalo Niagara International Airport on October 8. The
                  airline will initially offer ten nonstop flights, seven to Baltimore/Washington and one each to Las
                  Vegas, Orlando, and Phoenix. With this new service, Southwest will serve 58 airports in 57 cities
                  stretching across 29 states.
                                                                                            (Aviation Daily, June 21)

Spirit Airlines   The low-fare carrier will expand service at New York LaGuardia to 20 daily operations on
                  September 5. On the schedule are four new Florida destinations: Fort Myers, Orlando, Tampa, and
                  West Palm Beach. Along with the new cities, which will each see one roundtrip except for
                  Orlando’s two, Spirit will continue serving Fort Lauderdale and Melbourne in Florida, Detroit, and
                  Myrtle Beach, S.C.
                                                                                        (Business Wire, June 28)

                  The airline will begin flying from Chicago O’Hare to Fort Myers, Fort Lauderdale, and Orlando on
                  October 5.
                                                                                         (Aviation Daily, July 31)

                  Spirit will offer new service at Washington National with four daily flights to three Florida cities
                  within the next few months. The new operations come as a result of slot awards from the DOT that
                  were announced in early July.
                                                                                          (Aviation Daily, July 18)

Sun Country       The airline has applied for exemption to serve destinations in Mexico from Milwaukee, Minneapo-
                  lis/St. Paul, and St. Louis on a seasonal and year-round basis. On September 4, Sun Country plans
                  to begin permanent service from St. Louis to Cancun and Puerto Vallarta. On December 16, it wants
                  to serve those two points from Milwaukee on a seasonal basis, and to fly to those two destinations
                  and to Cozumel and Mazatlan from Minneapolis/St. Paul, also on a seasonal basis.
                                                                                           (Aviation Daily, July 31)

38                                                                                        US AIRWAVES – August 2000
                                          What’s Up

Swissjet               Swissjet has filed an application with the DOT for certification to operate combination charters and
                       charter sub-service for scheduled carriers. The Coral Gables-based startup told the DOT it plans
                       to buy two MD-80s during the first year of operations, and to add four aircraft as market conditions
                       warrant. The company plans to offer complete vacation service packages to points in the U.S.,
                       Canada, Mexico, Central and South America, Cuba, the Bahamas, and other destinations in the
                                                                                                 (Aviation Daily, June 21)

                       The Florida-based startup has been told by the DOT that it needs to provide stock offering
                       information and a schedule of availability of funding sufficient to pass the department’s financial
                       test. Because of this shortfall, the DOT said that Swissjet has left its “. . . application materially
                       deficient.” Without a resolution of these issues in 30 days, the DOT could dismiss the application;
                       with the requested information from Swissjet, the DOT would resume review of the application.
                                                                                                 (Aviation Daily, June 28)

TWA                    The value of shares of both parent companies slipped after the announcement that merger talks
                       between TWA and AirTran Airways had ended. AirTran spokeswoman Elizabeth Andrews said,
                       “This is over with,” and said that the airline will pursue expansion through “internal growth,” but
                       didn’t rule out other acquisitions. Julia Bishop-Cross, spokeswoman for TWA, had no comment.
                                                                                              (Associated Press, June 30)

                       Global Aviation Corp., a holding company intent on acquiring TWA, has given the airline’s
                       management more time to consider its offer, and has added more cash to the deal. The original
                       offer included $2 in Global Airlines stock, $2 in convertible preferred bonds, and $1 in cash, and
                       needed a response from TWA by midnight, June 25. The new offer has a deadline of midnight on
                       July 5, and increases the cash to $2 while reducing the amount for convertible preferred bonds to
                                                                                               (Aviation Daily, June 26)

                       TWA, in preliminary talks with AirTran on the possibility of a merger, is talking with other carriers
                       about potential deals, according to TWA sources. A TWA spokesman said, “We talk to lots of
                       people about lots of things,” but would not comment directly on a deal with AirTran. TWA CEO
                       Bill Compton did not rule out the possibility of TWA being acquired, but noted that many of its
                       competitors “would just as soon see us go out of business.”
                                                                                                (Aviation Daily, June 19)

United                 The Association of Flight Attendants is furious at management’s decision to appeal the recent court
                       ruling that found the company’s restriction on weight discriminated against female employees.
                       Patricia Friend, AFA International President, said that United “has habitually discriminated against
                       women in weight requirement policies that it has instituted over the years . . . United Airlines should
                       finally do the right thing. It should settle the case and move on.” United said that it was appealing
                       because the weight program was in line with contemporary practices and had been implemented
                       with flight attendant approval.
                                                                                                 (Aviation Daily, June 29)

                       United Shuttle service will expand at its Los Angeles hub on September 6. Among the new offerings
                       will be three new daily flights to Salt Lake City and additional frequencies to both Portland and
                                                                                               (Aviation Daily, June 20)

August 2000 – US AIRWAVES                                                                                                  39
                                                    What’s Up

           The United ALPA MEC has set the Labor Day weekend as a tentative date for a contract deal with
           the company. Although the Council has activated its strike preparation committee, spokesman
           Herb Hunter said that it does not indicate the union plans to take any job action soon. “We’re
           anywhere from six months to two years away from any strike action and hopefully that will never
           become necessary,” he said. United has “come forward and presented us with some unique
           conceptual ideas” to bring the union on board with the US Airways merger, Hunter said, “but this
           is a work in progress and all the details have not been worked out . . . This may not be enough, and
           it could be too little too late.”
                                                                                      (Aviation Daily, July 28)

           United plans to launch service between San Francisco and Lihue, Kauai, in the Hawaiian Islands, on
           October 31. The service will be aboard B-757s and will complement service to the island from Los
                                                                                   (Aviation Daily, July 19)

Vanguard   The airline announced that it will begin serving New Orleans on August 2. The twice-daily flights
           will go to Kansas City.
                                                                                 (Aviation Daily, June 26)

40                                                                                US AIRWAVES – August 2000